shreeji industries ltd Directors report

SHREEJI INDUSTRIES LIMITED ANNUAL REPORT 2003-2004 DIRECTORS REPORT TO THE MEMBERS, Your Directors have pleasure in presenting the 14TH ANNUAL REPORT together with the Audited Accounts of the Company for the Financial year ended 31st March 2004. FINANCIAL RESULTS The Summuarized results for the YEAR are as Under: (RS. IN LACS) YEAR ENDED ON YEAR ENDED ON 31/3/2004 31/3/2003 INCOME FROM OPERATION 199.39 94.38 GROSS LOSS FROM OPERATION (-) 169.99 (-) 184.62 LESS: DEPRECIATION 64.47 64.47 PROVISION FOR TAX - - NET LOSS FOR THE PERIOD (-) 234.46 (-) 249.09 ADD: BALANCE BROUGHT FORWARD (-) 900.87 (-) 738.86 LESS: TRANSFER FROM GENERAL RESERVE - 87.08 NET PROFIT/(LOSS) CARRIED FORWARD (-) 1135.33 (-) 900.87 OPERATIONS During the year overall operations of the company his improved significantly inspite the overall recession in Indian as well as in the International Market. During the year the company has improved its working and the cash losses have reduced. The Company is facing Liquidity crisis and to continue the production process the company has started Job Work activities of various customers along with own production. The Company continues to remain a Sick Industrial Company under the provisions of Sick Industrial Companies (Special Provisions) Act, 1985 as the Net Worth of the Company has been further corded due to losses incurred during the year. Despite incurring losses, the company is carrying on its normal activities and expects to recoup these losses during the subsequent years. REFERENCE TO BIFR The Company has already made reference to the Board for Industrial and Financial Reconstruction under the Sick Industrial Companies (Special Provisions) Act, 1985 and the Companys reference has been registered vide Case No.401/2002. Till date no hearing has been schedule by the BIFR. MARKETING Due to the Depressed Market condition the company could not achieve the desired sales and results. However the Company expects the increase in the demand both in National, and International markets. The company has solid marketing base in National as well as international markets since last 12 years, as soon as the demand will rise, the company will be benefited and will be able to produce improved results. RAW MATERIAL The Company has made adequate arrangement for procurement of Raw Material & enjoys good relationship with Mine owners and do not foresee any difficulty in procurement of the Raw Material. DIVIDEND In view of losses Directors are unable to declare any dividend on Equity & preference share for the year under review. INDUSTRIAL RELATIONS The Industrial relations in the Company during the year remained cordial. Your Directors wish to place on record their sincere appreciation for the excellent team work done by the workers, officers and executives of the Company at all levels. PARTICULARS OF EMPLOYEES The Company have not employed any employee during the year drawing salary equal to or more then the level stipulated under Section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees Rules 1975). DIRECTORS In accordance with the provision of companies Act, 1956 and the articles of association of the company, MR. N.P. Shrivastav retires by rotation and is eligible, offer himself for reappointment. The Board recommends his appointment. FIXED DEPOSIT During the year under review, the company has not accepted any deposits from public. DIRECTORS RESPONSIBILITY STATEMENT UNDER SECTION 217(2AA) OF THE COMPANIES ACT, 1956 The Directors confirm that: i) In the Preparation of the annual accounts, the applicable accounting standards have been followed by the company ii) Such accounting policies have been selected and consistently applied and judgements and estimates made that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as on 31st March, 2004 and of the loss of the Company for the year ended on that date. iii) Proper and sufficient care has been taken for the maintenance of the adequate accounting records in accordance with the provisions of the Companies act, 1956 for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities. iv) The annual accounts have prepared in going concern basis. CORPORATE GOVERNANCE: Members are aware that the Listing Agreement with the Mumbai Stock Exchange has been amended by the insertion there in of Clause 49, which requires the company to implement the code of Corporate Governance. Our company was required to comply with the said code within the Financial Year 2002-2003 but due to heavy losses, legal cases pending against the company, and as the companys Plant is located in the Remote area, the company is not in a position to deploy additional work force and suitable persons in the Board to implement the Complete Corporate Governance as mentioned in Clause 49 of the Mumbai Stock Exchanges Listing Agreement. Your Directors are taking necessary steps in implement Corporate Governance in the near future. PARTICULARS OF ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE OUTGO Particulars as required to be disclosed as per rule 2(A), 2(B) and 2(C) of the Companies (Disclosure of particulars in the report of Board of Directors) Rules 1988 about energy conservation, technology absorption and foreign exchange earning/outgo are set out in the Annexure attached hereto and form part of this report. AUDITORS M/S. AGRAWAL & MANDOWARA Chartered Accountants, Ahmedabad retire at the ensuing Annual General Meeting and being eligible, offer themselves for reappointment. The Board of Directors recommends their appointment. AUDITORS REPORT Notes forming part of the Accounts which are specifically referred by the Auditors in their Report are self-explanatory and therefore do not call for any further comments. ACKNOWLEDGEMENT Your Directors gratefully acknowledge the support and cooperation extended by the financial Institutions, Banks, various Govt. authorities etc. for their continued co-operation and support. The Board also express its deep appreciation of the commendable services rendered by the Companys employees at all levels. Regd. Office: BY THE ORDER OF THE BOARD VILLAGE : AAVAL TAL PALANPUR DIST. : BANASKANTHA GUJARAT : 385130 PLACE : AAVAL (K.G. TOSHNIWAL) DATED : 23rd July, 2004. CHAIRMAN & M.D. ANNEXURE TO DIRECTORS REPORT (A) Additional information as required under the Companies (Disclosure of Particulars in the report of Board of Directors) Rules 1988. 1. CONSERVATION OF ENERGY Your Management is regularly giving importance to conservation of energy by improvement in manufacturing process, better control over electricity consumption and using more cost effective source of energy. Periodical studies are being undertaken on identify new areas for efficient use of energy and utility. 2. TECHNOLOGY ABSORPTION Companys technology team has already absorbed the state of art technology in manufacture of POLISHED GRANITE SLABS and has already done a lot of successful work in adopting and improving the technology brought in by Companys plant suppliers and the visiting technical experts. The main thrust areas continue to improve productivity and technical efficiencies through continuously monitored programme of cost effectiveness and value engineering techniques. This has helped the Company to better the quality of its products and achieve economics in production costs. 3. FOREIGN EXCHANGE EARNING & OUTGO Foreign Exchange Earning (Export) Rs. Nil Foreign Exchange Outgo (Import of Rs. 10.80 Lacs components, parts, spares & Expenses) BY THE ORDER OF THE BOARD PLACE: AAVAL (K.G. TOSHNIWAL) DATED: 23rd July, 2004. CHAIRMAN & M.D.